Oil prices extend losses on China’s trade threats, recession concerns
China’s State Council Tariff Committee said in a short statement on Thursday that the country has no choice but to ‘take necessary measures to retaliate’, without specifying details.
Oil prices dropped more than 1% on Thursday, extending from the 3% fall the previous day, amid China’s vow to retaliate to the tariff hikes from the United States (US).
China’s State Council Tariff Committee said in a short statement on Thursday that the country has no choice but to ‘take necessary measures to retaliate’, without specifying details.
In tandem, US president Donald Trump said he is expecting a call from Chinese president Xi Jinping “very soon”.
Brent crude oil futures slid as much as US$1.81, to US$57.67 before ending the session US$1.25 lower, at US$58.23. West Texas Intermediate (WTI) closed 76 US cents lower, at US$54.47.
The latest tariff spat is on US$300 billion worth of Chinese goods.
The US said it would delay until mid-December a 10% tariff on some Chinese goods such as laptops and cell phones on Tuesday (August 13, 2019). Meanwhile other goods such as agricultural products, clothes, and footwear will be hit by tariffs from September 1 this year.
Negotiators between both sides have previously also agreed for a call in the coming two weeks to continue with the trade discussions.
In addition to the ongoing trade spat, traders are concerned that the US, the world’s biggest economy could be heading for a recession, as the US Treasury bold yield curve inverted on Wednesday for the first time since 2007.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
